Strategic Profile on T-Mobile Copmany - Assignment Example

Strategic Audit on T-Mobile Contents Contents 2 Company Profile 3 Vision and Mission ment and companies objectives 3 Competitive Strategy of T-Mobile 4 Business model used by T-mobile 4 Company’s ethics and Social responsibility 4 Porter 5 Force Model 5 Driving forces 6 Industry rivals positioned 6 Key factors for being a success in the market 6 References 8 Company Profile T-Mobile US, Inc., which was earlier MetroPCS Communications, Inc., became corporate on March 10, 2004. T-Mobile is a carrier of wireless communication, and it also provides services with wireless broadband mobile mainly in the metropolitan areas of US which includes the Atlanta, Dallas/Fort Worth, Philadelphia, Las Vegas, San Francisco, Los Angeles, Miami, Detroit, New York, Orlando/Jacksonville, Boston, Sacramento, and Tampa/Sarasota. T-Mobile and MetroPCS are its flagship products. By end of 2012 T-Mobile had the license for wireless broadband spectrum covering a total population of 144million and covered most of the metropolitan areas in US. It gives its services using CDMA technique using the latest technology of 4G LTE. On 26th March 2013, T-Mobile came up with the un-carrier value proposition by introducing a simple concept of easy choice service and provided the customers with low price for all the popular devices in US. From April the company started selling iPhone at all the stores owned by the company along with the easy choice plan. The SIC code for the company is 481207 for cellular telephone services while the NAICS code is 517210 which is related to the wireless telecommunication except the satellite. The company by the end of first quarter of 2013 had around 34 million customers, with a total increase of 579,000 customers compared to the fourth quarter of 2012. The adjusted EBITDA for the company was $1.2 billion showing an increase of 12.4% from the last quarter of 2012 (T-Mobile, 2009). Vision and Mission statement and companies objectives T-Mobile is one of the leading mobile operators in the global market. By 2013 the company has provided value services to more than 120 million customers in Europe and US. The Companies mission statement is to become world’s highest rated service providing company. With reference to the mission statement the main objective of the company is to satisfy customer needs and give the best service to the customers across the world. Because of this the company provides variety of innovative and user friendly products and services. The vision statement of the company is based majorly on three corporate values which are with providing customers with Reliability, simplicity and inspiration Everywhere in the world the consumers can tally on the release of our three corporate values – reliability, simplicity and inspiration. It creates the inspiration by giving innovative services that fulfill the daily life goal of the customers. Apart from concentrating over the customers the company also takes part in various activities for the betterment of the society as a CSR activity (T-Mobile, 2014). The financial and strategic objectives of the company revolve around the single objective of having a continuous growth in the company’s revenue and also increase the sales volume by providing the best value added service to the customers. Competitive Strategy of T-Mobile T-Mobile US Inc has shown higher growth rate than its biggest competitor AT&T Inc for the last two quarters in 2013 which shook the whole of US market. From March 2013, T-Mobile has positioned its products as the best choice by consumer by providing flexible policies and cheaper rates with more innovative products. This strategy has helped the company very quickly as from the second quarter itself it has started to show huge growth which has surpassed AT&T’s growth rate by a huge margin (Porter, 2008). By the end of third quarter T-Mobile had approximately 444,000 new connections added while in comparison to it AT&T had only 363,000 new connections. T-Mobile has picked up customers from all its major competitors but mainly from AT&T. Consumers are more attracted towards the cheap rates of the services been provided by T-Mobile along with better network facilities and consumers have also liked its introduction of I-phone. Company looks to have a strategy of making customers sticky and making them not to deviate from its brand by providing better innovative services that adds to a lot of value to the customers, just like in Nov. 2013 it came up with the plan of selling Apple’s ipad with 200MB of free data per month. These types of innovative service schemes have led the growth of the company and have helped it to capture the major market share from its competitors. Business model used by T-mobile T-Mobile has planned its business model on the basis of providing value addition to its customers and the value proposition for the customers is been maximized by providing the innovative services than its competitors. The company looks to provide these services at a less price to the customers and thus it attracts more customers and they tend to change their preference from other brands and take the services provided by T-Mobile. This innovative strategy implemented by the company has helped it to get more connections in less time and it has increased its sales for products and also services in the global market. The company has grown over the years in an exponential way and has become one of leader in this sector in global market. Thus the basic model used by T- Mobile is customer centered as a result they provide lots of satisfaction to the customers and have fulfilled their needs and wishes which in turn has helped the company to have a continuous growth in its profit rate. Company’s ethics and Social responsibility Corporate social responsibility is important as it is used to get a balance between people, place and profit. T-Mobile has taken the responsibility for the effects it has caused over humans, society and environment. The major CSR initiatives of the company are basically of 4 categories that are listed below. Sustainable policies in the business by maintaining green power in all its stores to promote the usage to green energy in the society. Good products & services, like collaborating with Samsung T-mobile has come up with the first green mobile in the world which are made up of recycled materials and are run using solar cells. Respecting human rights and proving equal opportunities with good health and safety measures of its employees in its production process. T-Mobile also has a sustained relationship with War child and has looked to help War child by providing people and resources like phones, communication links. Thus T-mobile not only looks to achieve customer satisfaction but also looks to do CSR activities and has good ethics in the company. Porter 5 Force Model Porter’s 5 forces model for industry analysis is generally done to understand the company’s position in the market. These 5 forces are basically categorized into 5 factors which are seen below Threat of competitors- For T-mobile in the US market the major competitor is AT&T and it is a big threat as AT&T , Verizon and Sprint Nextel can also come up with more innovative products and services at a cheap rte and satisfy the customer needs Bargaining power of buyer- In this case the bargaining power of the buyer is very high because of the presence of high number of customers in the global market. Threat of substitutes-In case of substitutes the risk is very less s the mobile phones and network services cannot be replaced by any other substitute. Supplier bargaining power- T-mobile has its own stores globally as a result of which the bargaining power of the supplier is low but on the other hand with the suppliers who are involved with supply of materials to the company is quite high as good quality material suppliers can bargain more because of the presence of high number of competitors in this industry. Barriers to entry- The chances for entry of new companies are very high as a new company may come up with more innovative products and services at a low price. Thus T-mobile should take these 5 forces in mind and take the decisions in its marketing policy to continue to both leaders in the market in global basis. Driving forces The various driving forces based on which mobile and network industry companies competes are like the technology, innovation, customer satisfaction, relations with consumers, price and many more. All these forces in the Mobile and network industry is very high and the company which looks to have fulfilled all these forces has the competitive advantage over the other competitors in the market. T-Mobile concentrates mainly over two driving forces which have given it a competitive advantage over other competitors. These forces are the price and customer satisfaction. The company has looked to give customers innovative products which have helped the customer to get satisfied as those products have fulfilled the needs and also the wish of the customers. These products and services are also provided at a cheap rate to the customer as a result of whom customers prefer to get the service from T-mobile rather than other companies. The company should take care of the continuous innovation and coming up with bit better products at regular intervals so that I can reduce the threat from the rivalries and also the new entrants in the same industry (Ahlstrom and Bruton, 2009). Industry rivals positioned The position of T-Mobiles competitors in the market is very good as AT&T, Verizon, Qwest and Sprint Nextel have a god market share and revenue as well. T- Mobile has emerged in the last few years but its net revenue is yet low when compare to others especially to its major competitor AT&T. Net revenue of T-mobile is $4.71B whereas that of AT&T is 5.35B and that of Verizon is 7.31B. In the US market Verizon is leading way ahead but AT&T has got strong completion from T-Mobile and has lost majority of customers to T-Mobile. T-Mobile has come up fast with innovative products at low price to attract majority of customers who have shifted their preferences from AT&T towards T-Mobile services (Henry, 2011). Key factors for being a success in the market The Mobile and network industry is very vast and has lots of companies which are each other’s fierce rivals and are trying hard to gain the maximum market share in the global market. The major three key factors are Technology innovation- T-Mobile has been on top in this factor as they have always come up with highly innovative products and services that are very new in the market and provides lots of services. Price- T-Mobile has looked to provide the customers with cheap products and services for the customers. Customer satisfaction- T-mobile comes up with new products at cheaper rates to fulfill the customer needs and wishes. References 1. Porter,M., (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York. Simon and Schuster. Print. 2. T-Mobile, (2009). T-Mobile Macedonia AD Skopje Financial Statements. Retrieved From: http://www.t-mobile.mk/public/documents/Annual_Report_2009.pdf. 3. T-Mobile, (2014). Vision. Retrieved From: . 4. Ahlstrom,D and Bruton,G, (2009). International Management: Strategy and Culture in the Emerging World. Mason. Cengage Learning. Print. 5. Henry,A, (2011). Understanding Strategic Management. 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